§ 27-13.1-6 - Conflict of interest. - Rhode Island Statutes

SECTION 27-13.1-6

   § 27-13.1-6  Conflict of interest. –(a) An examiner may not be appointed by the director if the examiner, eitherdirectly or indirectly, has a conflict of interest or is affiliated with themanagement of or owns a pecuniary interest in any person subject to examinationunder this chapter. This section shall not be construed to automaticallypreclude an examiner from being:

   (1) A policyholder or claimant under an insurance policy;

   (2) A grantor of a mortgage or similar instrument on theexaminer's residence to a regulated entity if done under customary terms and inthe ordinary course of business;

   (3) An investment owner in shares of regulated diversifiedinvestment companies; or

   (4) A settlor or beneficiary of a "blind trust" into whichany otherwise impermissible holdings have been placed.

   (b) Notwithstanding the requirements of this section, thedirector may retain from time to time on an individual basis, qualifiedactuaries, certified public accountants, or other similar individuals who areindependently practicing their professions, even though these persons may fromtime to time be similarly employed or retained by persons subject toexamination under this chapter.